Goldman Biased Toward Buying Premium (SNDK, AAPL, BAC)

Goldman Sachs is out with a research report this afternoon, where it states the case for being buyers of volatility instead of sellers. The analysts noted that options prices on single stocks are near their lowest levels in years ahead of earnings on average. The analysts also noted that, in addition to volatility being low on an absolute basis, short-dated term structure is upward sloping for the average S&P 500 stock, with one- month implied volatility 0.3 volatility points less than three-month. This is unusual ahead of earnings season where one- to three-month term structure has been downward sloping by 2 points on average over the past nine years at this point ahead of earnings season. The Goldman analysts suggest that trader take a look at buying premium in Apple Inc. AAPL, Bank of America BAC, EMC Corp EMC, Freeport-McMoRan Copper & Gold Inc. FCX, and SanDisk Corporation SNDK heading into earnings.